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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Mortgage Question
Are banks requiring 20% DP or can you get away with leaving 5% or 10%. I know it prob depends on credit and income too, but I'm just trying to get a general gauge on how much we need to save and prepare ourselves.
Also, can you still roll closing costs into your mortgage or are you required to pay for them upfront.
Please excuse my 12yo questions about houses- I'm REALLY new at this
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Posted 5/24/10 12:16 PM  |
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Prudential Douglas Elliman Real Estate
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Mortgage Question
Jess,
Look at an FHA loan. Nick and I put down 3.5%. we would never have been able to afford 20% and closing costs. Let me know if you need any help since I never knew anything until we went through it.
we rolled some of our closing costs into the mortgage (sellers concession)
Message edited 5/24/2010 12:19:44 PM.
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| Posted 5/24/10 12:19 PM |
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Diva
I am what I am
Member since 12/05 2825 total posts
Name:
Jennifer
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Re: Mortgage Question
Posted by alli3131
Jess,
Look at an FHA loan. Nick and I put down 3.5%. we would never have been able to afford 20% and closing costs. Let me know if you need any help since I never knew anything until we went through it.
we rolled some of our closing costs into the mortgage (sellers concession)
Same here, we applied for an FHA loan. Minimum is 3.5%, but you can always put down more if you'd like.
The only drawback to this is you will need to pay a PMI until you finally pay off 20% of the home's value.
Message edited 5/24/2010 12:22:59 PM.
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| Posted 5/24/10 12:21 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Mortgage Question
Posted by alli3131
Jess,
Look at an FHA loan. Nick and I put down 3.5%. we would never have been able to afford 20% and closing costs. Let me know if you need any help since I never knew anything until we went through it.
we rolled some of our closing costs into the mortgage (sellers concession)
We are also in the process of doing an FHA mortgage - we put down 3.5% as well. We could afford our closing costs but not closing costs plus 20% down. after all is said and done we will have about 24k left in our other savings accounts. If we put 20% down we would not have had a penny to our name afterward. Keep in mind closing costs can be anywhere from 10-15k
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| Posted 5/24/10 12:48 PM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Re: Mortgage Question
Posted by Diva
Posted by alli3131
Jess,
Look at an FHA loan. Nick and I put down 3.5%. we would never have been able to afford 20% and closing costs. Let me know if you need any help since I never knew anything until we went through it.
we rolled some of our closing costs into the mortgage (sellers concession)
Same here, we applied for an FHA loan. Minimum is 3.5%, but you can always put down more if you'd like.
The only drawback to this is you will need to pay a PMI until you finally pay off 20% of the home's value.
Oh yea??? How long ago was this though?? Everyone I've been talking to has been telling me that banks are super hesitant on lending these days unless you have at LEAST 10% and are willing to pay the Closing costs upfront.
Do u need to any special credit raiting to qualify for the FHA?
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| Posted 5/24/10 12:51 PM |
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Diva
I am what I am
Member since 12/05 2825 total posts
Name:
Jennifer
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Re: Mortgage Question
Posted by Belongs2DanBuckley
Posted by alli3131
Oh yea??? How long ago was this though?? Everyone I've been talking to has been telling me that banks are super hesitant on lending these days unless you have at LEAST 10% and are willing to pay the Closing costs upfront.
Do u need to any special credit raiting to qualify for the FHA?
We signed contracts late April, so the mortgage process hasn't been that long, early May?
We chose to put down 7% and yes we plan to pay closing costs upfront, although you have the option of rolling them into your mortgage.
FHA is actually more lenient with credit scores than a regular mortgage company.
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| Posted 5/24/10 1:19 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Mortgage Question
we did FHA and put down 3.5%.
you can also do a sellers consession to wrap some of the closing costs into the mortgage, if the house apprises for the difference. so if you buy a house for 100k and you need to wrap in 15k in closing costs, the house would need to appraise for 115k
BUT- I read a few months ago that they were changing FHA and you would have to put down a minumum of 10% down and they were only going to allow a sellers consession to a certain amount(I think it was 5% but I'm not sure) If the change was put into action I remember it said something about July 2010 I will see if I can find anything about it
ETA-FHA site with a ton of info
Message edited 5/24/2010 1:46:31 PM.
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| Posted 5/24/10 1:38 PM |
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Nik211
my little monkey<3
Member since 5/08 3303 total posts
Name:
Nik
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Re: Mortgage Question
When we were getting ready to buy we toyed with doing an FHA loan with 3.5% down but in the end we decided to put 20% down so that our monthly payment would be lower. We wanted to have a low monthly payment vs having that money in the bank and with house prices being lower in FL as well as the closing costs being lower it's easier to manage the 20% down...
Our mortgage broker told us that it could take longer to get the FHA loan approved, it was more paperwork and it could be a little annoying for us since we were dealing with short sales...but that wasn't the reason we decided to do conventional - we did conventional b/c we wanted to have more money left over every month after paying our mortgage and putting the 20% down wasn't that much of a stretch for us - especially since we'd be getting the First Time Homebuyers Tax Credit which would replenish our savings a bit...
In short you should be able to qualify for the FHA loan as long as you don't have horrible credit and you have stable income - at least that was the case when we were buying 8 months ago. I know there are some fees that you pay up front that you don't pay when doing conventional but I don't remember all the details - it had to do with mortgage insurance/PMI things...
Good luck!
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| Posted 5/24/10 1:39 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Mortgage Question
Posted by Belongs2DanBuckley
Posted by Diva
Posted by alli3131
Jess,
Look at an FHA loan. Nick and I put down 3.5%. we would never have been able to afford 20% and closing costs. Let me know if you need any help since I never knew anything until we went through it.
we rolled some of our closing costs into the mortgage (sellers concession)
Same here, we applied for an FHA loan. Minimum is 3.5%, but you can always put down more if you'd like.
The only drawback to this is you will need to pay a PMI until you finally pay off 20% of the home's value.
Oh yea??? How long ago was this though?? Everyone I've been talking to has been telling me that banks are super hesitant on lending these days unless you have at LEAST 10% and are willing to pay the Closing costs upfront.
Do u need to any special credit raiting to qualify for the FHA?
banks are stricter, but you can still get a loan. as long as you work, have strady income (and not a brand new job) some $ in the bank you will fine.
I worked with a great mortgage person FM if you want her info
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| Posted 5/24/10 1:46 PM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
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Re: Mortgage Question
AWESOME! Thanks for the info everyone. I hope they reinstate the First Time Homebuyer Credit...that would seriously be freakin sweet.
I'm just tired of renting at this point, its high time we grow up and get our own place 
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| Posted 5/24/10 3:16 PM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Mortgage Question
Jess,
With FHA it is jsut a bit of a longer process and I had a problem cause I have stated income but we were able to get a loan using Nick so it all worked out.
If you have decent credit and good employment history then you should have no problem. We put 5% down on contract because we ran into issues where sellers wanted more than 3.5 on contract incase we flaked on them they wanted more cash but we then only put 3.5 for the mortgage and used the other 1.5 that we got back at the table towards closing cost. We also put 5K into our mortgage for closing costs.
I can give you actual #s if it will help get a better picture....just FM me.
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| Posted 5/24/10 3:20 PM |
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MockingJay
Ring out the old...
Member since 9/08 1312 total posts
Name:
Ring in the new!
|
Re: Mortgage Question
Posted by alli3131
Jess,
With FHA it is jsut a bit of a longer process and I had a problem cause I have stated income but we were able to get a loan using Nick so it all worked out.
If you have decent credit and good employment history then you should have no problem. We put 5% down on contract because we ran into issues where sellers wanted more than 3.5 on contract incase we flaked on them they wanted more cash but we then only put 3.5 for the mortgage and used the other 1.5 that we got back at the table towards closing cost. We also put 5K into our mortgage for closing costs.
I can give you actual #s if it will help get a better picture....just FM me.
Yea next time I see you I'm def gonna pick your brain. We're still a ways off. We just bought a car and put $12k down so I'm hoping we'll save enough for something early 2011.
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| Posted 5/24/10 4:02 PM |
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